METALS
Benefits of trading metals with SWEDMARKETS:
Portfolio diversification
Convenient trading hours
Low spreads
Management of risks
Important information
Swaps values may be adjusted daily based on market conditions and rates provided by our Price Provider applicable to all open positions. Triple swaps are applied every Wednesday. Swaps for XAU and XAG swaps are expressed in pips per 1 lot.
Server time: winter: GMT + 2, summer: GMT + 3 (DST) (from the last Sunday in March to the last Sunday in October).
From 23:55 to 00:05 (server time), an increase in spreads and a decrease in liquidity are possible due to the daily transfer of bank positions to the next day. In case of abnormal liquidity / spreads at this time, excessive increase in spreads and slippage is possible. Therefore, during this period, the execution of orders may be difficult.
Server time: winter: GMT + 2, summer: GMT + 3 (DST) (from the last Sunday in March to the last Sunday in October).
From 23:55 to 00:05 (server time), an increase in spreads and a decrease in liquidity are possible due to the daily transfer of bank positions to the next day. In case of abnormal liquidity / spreads at this time, excessive increase in spreads and slippage is possible. Therefore, during this period, the execution of orders may be difficult.
An example of calculating margin requirements when trading metals
Base account currency: USD
Position: Open 10 lots to BUY XAUUSD at 1,316.99
Size of 1 lot: 100 ounces
Margin requirements: 0.5% of par
Face value: 10 * 100 * 1,316.99 = 1,316,990 USD
Margin Required: $ 1,316,990 * 0.005 = $ 6,584.95
Base account currency: USD
Position: Open 10 lots to BUY XAUUSD at 1,316.99
Size of 1 lot: 100 ounces
Margin requirements: 0.5% of par
Face value: 10 * 100 * 1,316.99 = 1,316,990 USD
Margin Required: $ 1,316,990 * 0.005 = $ 6,584.95
Trade in gold and precious metals
Highly valued since ancient times, precious metals, in particular gold, have always been associated with financial solvency.
In financial markets, investing in precious metals tends to preserve capital over a long period of time.
Thus, they provide a long-term safe haven for traders who specialize in commodities.
Factors affecting precious metals' prices:
Supply and demand
As demand grows, prices for metals rise, while if demand is weak, prices for precious metals fall.
US dollar value
Since precious metals are denominated in dollars, their price tends to be inversely related to the value of the US dollar.
Inflation
Inflation directly affects the prices of precious metals. As a rule, higher inflation leads to higher prices for precious metals.
Industrial demand
The technology and industrial uses of gold, such as the demand for jewelry and electronics, can drive up the price of precious metals.
Investing in precious metals can help traders hedge against volatile markets, political uncertainty and economic collapse. It can also be an important part of a diversified long-term investment portfolio.
In financial markets, investing in precious metals tends to preserve capital over a long period of time.
Thus, they provide a long-term safe haven for traders who specialize in commodities.
Factors affecting precious metals' prices:
Supply and demand
As demand grows, prices for metals rise, while if demand is weak, prices for precious metals fall.
US dollar value
Since precious metals are denominated in dollars, their price tends to be inversely related to the value of the US dollar.
Inflation
Inflation directly affects the prices of precious metals. As a rule, higher inflation leads to higher prices for precious metals.
Industrial demand
The technology and industrial uses of gold, such as the demand for jewelry and electronics, can drive up the price of precious metals.
Investing in precious metals can help traders hedge against volatile markets, political uncertainty and economic collapse. It can also be an important part of a diversified long-term investment portfolio.
© 2021 SWEDMARKETS.
All rights reserved.
All rights reserved.
About Company
Trading conditions
Trading
Investors
Trading Instruments
Partnerships
support@swedmarkets.com
verification@swedmarkets.com
finance-department@swedmarkets.com